In the near future, protection premiums are going to be set less by the actuarial profession and mor...
In the near future, protection premiums are going to be set less by the actuarial profession and more by the medical profession, according to reinsurers Swiss Re.
Speaking at an industry lunch, Mark Johnson, director of client markets, Europe, at Swiss Re, forecasted that the protection industry would increase its dialogue with the medical profession. He said: "If you think of it, a medical breakthrough would have a mass impact on protection markets. For example, obesity is a problem affecting insurers but what would the mass use of statins for those over a certain age, as has been suggested, have as an affect on protection markets? Overall medical issues are making pricing in the market a lot more complex."
Ron Wheatcroft, vice president of client markets, Europe, agreed. He said: "Actuaries have already seen this issue coming and have said there is an issue with forecasting beyond a certain point into the future - beyond the six-to-nine month period. An additional point is that the more competition in the protection market, the greater scope there is that any given provider has underpriced for its business."
